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Daniel Lacalle, chief economist and investment manager at Tressis Gestion, highlights accelerating economic deterioration in Iran.
According to Lacalle, Iran is experiencing nearly 90 percent inflation, zero oil-export revenues, and the rial trading above 2.7 million per U.S. dollar—a decline of more than 50 percent in one year. The country’s GDP has contracted by 10.1 percent. Lacalle attributes this crisis to policies that undermine productive capacity, finance terrorism, and spur international isolation.
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Lacalle previously argued that monetary and fiscal inflation policies contributed to an affordability crisis in key markets, increasing the appeal of socialism in affected economies, as detailed in his analysis on policy-driven inflation. He has also maintained that the U.S. dollar remains the dominant currency in global reserves and payments, due to the absence of a viable alternative, according to his report on dollar dominance.